DEPRSOYD

The DEPRSOYD function calculates the depreciation expenses for a series of assets. DEPRSOYD uses the sum-of-years'-digits method to depreciate the assets over the specified lifetime of the assets. The starting and ending values are specified for the assets acquired in each time period.

A numeric expression that contains the starting values of the assets. The start-exp expression must be dimensioned by a time dimension. For each value of the time dimension, start-exp contains the initial value of the assets acquired during that time period. In addition to a time dimension, start-exp can also have non-time dimensions.

end-exp

A numeric expression that contains the ending values of the assets. The end-exp expression must be dimensioned by the same dimensions as start-exp. For each value of the time dimension, end-exp contains the final (or salvage) value for the assets acquired during that time period. Each value of start-exp must have a corresponding end-exp value. For example, when the assets acquired in 1995 have a salvage value of $200, then the value of end-exp for 1995 is $200.

n

An integer expression that contains the depreciation lifetime of the assets. The n expression can have any of the non-time dimensions of start-exp, but it cannot have a time dimension.

FULL

Specifies that the full amount of a time period's depreciation expense is charged to the time period in which assets were acquired. Charges the full amount to all of the assets in the series. (Default)

HALF

Specifies that half of the full amount of a time period's depreciation expense is charged to the time period in which assets were acquired. Charges half the full amount to all of the assets in the series. You might want to use HALF when assets are acquired during the second half of the time period.

portion-exp

When you want to charge the full amount for some assets and half the amount for other assets, you can supply a portion-exp expression that is dimensioned by any of the non-time dimensions of start-exp. The portion-exp expression must be a text expression with values of FULL or HALF.

time-dimension

The name of the time dimension by which start-exp and end-exp are dimensioned.When the time dimension has a type of DAY, WEEK, MONTH, QUARTER, or YEAR, the time-dimension argument is optional.

Notes

How Result Is Dimensioned

The result returned by DEPRSOYD is dimensioned by all the dimensions of start-exp.

Using Optional Arguments

When you include the optional time-dimension argument, you must also include the preceding optional argument (FULL or HALF or portion).

Depreciation for a Given Time Period

DEPRSOYD calculates the depreciation expense for a given time period as the sum of that period's depreciation expenses for all assets in the series that are not yet fully depreciated. The first period of depreciation for an asset is the period in which it was acquired.

Calculation Method Used

For each time period in the lifetime of an asset, DEPRSOYD bases the depreciation expense calculation on a specific cut of the total amount to be depreciated. The value of the cut is such that the full depreciation expense can be achieved over the lifetime of an asset by multiplying the cut by the number of time periods not yet depreciated.

For example, when the lifetime of an asset is 5 years, then DEPRSOYD calculates the cut, x, as follows.

5x + 4x + 3x + 2x + 1x = total depreciation

In this case, the cut is 1/15th of the total depreciation. When the initial asset is $1,000 and its salvage value is $100, then the total depreciation is $900.00, and x is $60 ($900/15). For the first time period, the depreciation is $300 ($60 x 5). For the second time period, the depreciation is $240 ($60 x 4) and so on.

The HALF Argument

When you specify HALF as the portion of depreciation expenses to charge to the period of acquisition, the HALF factor is applied to each period. Half of each period's full depreciation expense is rolled to the next period, and the final half period of depreciation expense takes place in the n + 1 time period.

NA Mismatch Errors

When a value of start-exp is NA and the corresponding value of end-exp is not NA, an error occurs. Similarly, when a value of end-exp is NA and the corresponding value of start-exp is not NA, an error occurs.

NASKIP Option Settings

DEPRSOYD is affected by the NASKIP option when a value of start-exp and the corresponding value of end-exp are both NA. When NASKIP is YES (the default), DEPRSOYD treats the values as zeros when calculating the depreciation expenses. When NASKIP is NO, DEPRSOYD returns NA for all affected time periods.

Dimension Limits Ignored

The DEPRSOYD calculation begins with the first time dimension value, regardless of how the status of that dimension may be limited. For example, suppose start-exp is dimensioned by year, and the values of year range from Yr95 to Yr99. The calculation always begins with Yr95, even when you limit the status of year so that it does not include Yr95.

Related Functions

The DEPRDECL function, which uses the pure declining-balance method to calculate depreciation expenses; the DEPRDECLSW function, which uses a more widely used variation on the declining-balance method to calculate depreciation expenses; and the DEPRSL function, which uses the straight-line method to calculate depreciation expenses.

Examples

Example 11-8 Using DEPRSOYD to Calculate Depreciation Expenses for Assets Acquired in a Single Period

This example shows how to use DEPRSOYD to calculate depreciation expenses for assets acquired in a single time period.

The following statements create two variables called assets and salvage.

DEFINE assets DECIMAL <year>
DEFINE salvage DECIMAL <year>

Suppose you assign the following values to the variables assets and salvage.

Example 11-9 Using DEPRSOYD to Calculate the Depreciation Expenses for Assets Acquired in Multiple Periods

You can also use DEPRSOYD to calculate the depreciation expenses for a series of assets. Suppose you change the values for the year 1997 in the variables assets and salvage to the values shown in the following report.

The following statement reports asset and salvage values along with depreciation expenses for the assets. Note that the call to DEPRSOYD to calculate the depreciation expenses specifies an asset lifetime of 5 periods (in this case, years).

Notice that as a result of the second asset, the depreciation expenses increase in 1997. The depreciation is the total depreciation of $180.00 ($60x3) for the first asset and $150.00 ($30x5) for the second asset.